Keywords
Regional Trade Agreement (RTA)
East African Community (EAC)
Revealed Comparative Advantage
East African Community (EAC)
Revealed Comparative Advantage
Abstract
This study attempts to assess the welfare effects of EAC on partner states in the backdrop of multiple memberships in different Regional Trade Agreements. Using UN COMTRADE databas at 6 digit level of aggregation with HS96 nomenclature, we estimate a number of trade indicator with a view to evaluating the composition of trade structures, trade flows, the degree of opennes of the economies, and the potential for trade diversion or creation, all of which have critical implications for EAC’s integration process. On the basis of these indicators, we find that EAC is welfare enhancing to partner states.
References
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Finger, Michael J., and Kreinin, E. Mordechai, (1979). “A Measure of Export Similar- ity and its Possible Uses”. Economic Journal 89, no. 356: 905-912.
InterAnalysis Limited (2010). Systematic In- tegrated Framework for Trade Analy- sis. Sussex Innovation Centre, UK, 36-37.
Kellman, Mitchell and Schroder. Tim (1983), “The Export Similarity Index: Some Structural Tests” Economic Journal 93, no. 369:193-198.
Pomfret, Richard (1981),” The Impact of EEC Enlargement on non-member Medi- terranean Countries’ Exports to the EEC”. Economic Journal, 91 no. 363: 726-729.
Sodersten, Bo. and Reed, Geoffrey (1994). In- ternational Economics. 3rd Edition, London: Macmillan Press Limited.
——————————————— , (2010), Trade Report 2009, Arusha, Tanzania.
Finger, Michael J., and Kreinin, E. Mordechai, (1979). “A Measure of Export Similar- ity and its Possible Uses”. Economic Journal 89, no. 356: 905-912.
InterAnalysis Limited (2010). Systematic In- tegrated Framework for Trade Analy- sis. Sussex Innovation Centre, UK, 36-37.
Kellman, Mitchell and Schroder. Tim (1983), “The Export Similarity Index: Some Structural Tests” Economic Journal 93, no. 369:193-198.
Pomfret, Richard (1981),” The Impact of EEC Enlargement on non-member Medi- terranean Countries’ Exports to the EEC”. Economic Journal, 91 no. 363: 726-729.
Sodersten, Bo. and Reed, Geoffrey (1994). In- ternational Economics. 3rd Edition, London: Macmillan Press Limited.